Joachim and I, after some discussion in the other thread, found a new answer. I'll share it here as well. The confusion arose due to Wise's Balance Cashbacks technically not being credit card cashbacks on purchases (as the term cashback is typically used), but actually an interest. I confirmed this with Wise support as well. Example: Assume you have 1000 SEK on the Wise bank account before 1% interest ("Wise Balance Cashback"). Once you get paid interest (10 SEK), you get the following transactions: Konto Benämning Debet Kredit 1980 Valutakonto 7   1640 Skattefordringar 2   6996 Betald utländsk inkomstskatt 1   8311 Ränteintäkter från bank   10   Note: The 7 SEK you see paid into the account and 3 SEK was paid to the Belgian tax authority. Out of these 30%, you should be able to reclaim 20% from the Belgian authorities, since due to the current double taxation treaty (as of 2025), they can tax at most 10% to Swedish entities. ... View more

Thank you, I'm glad we see things the same now. I now also understand where the misunderstanding originated. The question wasn't precise enough that this concerned "Balance Cashbacks" which is Wise's own term for "interest". This is not about credit card cashback awarded for purchases. I'll add our shared response to Ana's thread as well, for anyone googling this in the future. ... View more

Maybe its helpful if I show what actually happens on the Wise account itself. Let's say there is 1% yearly interest (or "Wise Balance Cashback") and there is 1000 SEK on the Wise account at the end of a period (I'm using SEK for simplicity, typically this would be another currency). At the end of a period, 1% of 1000 SEK is 10 SEK. However, the money that actually gets into our bank account is 7 SEK. Wise has already subtracted the 30% withholding tax (3 SEK), before it even reaches our bank account. To make things a little more complex, this yearly interest (or Wise Balance Cashback) is amortized monthly, so you get this payment every month. What I conclude from this, is that the 7 SEK would be "8311 Ränteintäkter", 2 SEK would be money Belgium owes us, and 1 SEK would be pre-paid taxes (which we might credit on the tax return). Just like you, I'm also confused why Wise uses the term "Balance Cashback"... is this for regulatory reasons or is it marketing? Or is it in legal terms a cashback, although it behaves in all ways like an interest? ... View more

Hi Ana, I gave a response in the thread you linked above after finding your question. I believe your original intuition was correct. ... View more

It seems to me that the advice given by Joachim is incorrect, possibly due to a misunderstanding of what Wise Balance Cashback is. Despite the misleading name, the "Wise Balance Cashback" is interest on money in a Wise bank account, that's why Wise pays withholding tax to the Belgian authorities (30%). According to Sweden's double taxation treaty with Belgium, you can only be taxed for 10% on interest. Therefore, you should be able to claim a refund of 20% from the Belgian authorities. Would the appropriate accounts here not be something like "8311 Ränteintäkter" (for interest earned) and "1640 Skattefordringar" (for money due from Belgium)? Putting this on "47 Reduktion av inköpspriser" seems incorrect as it's not tied to purchases, rather it's interest on a bank account for money you put into it. ... View more